What Use Cases does Stable Jack offer?
Stable Jack is a protocol that can be built on top of several assets so that it can allow different use cases such as leveraged exposure without liquidation risk, leveraged yield exposure, or leveraged points exposure. Here are some examples of how Stable Jack can utilize the collateral assets:
LST and LRT tokens are great collateral assets as they have volatility and yield which can be stripped into two different tokens to allow users to opt for leveraged yield exposure or leverage exposure to collateral assets without liquidation risk. To sum up, Stable Jack uses LST/LRT assets as collateral to create 2 products:
Yield Token holders can access leveraged yield exposure on a USD-pegged yield-bearing asset which makes it a valuable collateral asset.
Volatility Token holders can achieve leveraged long exposure on the collateral asset without liquidation risk or paying any funding fee. This will allow them to beat the price action of the collateral asset in the long term.
Yield-bearing stablecoins can also be used as collateral in Stable Jack to offer fixed yield and leveraged yield exposure without any maturity dates or risk of losing principal while holding YT.
Yield Token holders can earn a fixed yield while maintaining their principal, thus, becoming a great asset to use as collateral for looping thanks to its predictability in returns.
Leveraged Yield Token holders can earn leveraged yield exposure if the yield-bearing asset performs as expected or performs better than it is supposed to.
Lending protocols often find it challenging to stand out in the market as most can only offer variable yields, and those that provide fixed yields have struggled to achieve product-market fit due to suboptimal user experience, scalability problems, and lack of capital efficiency.
However, similar to yield-bearing stablecoins, Stable Jack can offer 2 products:
Yield Token holders can earn a fixed yield while maintaining their principal, thus, becoming a great asset to use as collateral for looping thanks to its predictability in returns.
Leveraged Yield Token holders can earn leveraged yield exposure if the supply APR performs as expected or performs better than it is supposed to.
Despite significant advancements, impermanent loss caused by LVR remains a major issue for decentralized exchanges. This problem forces DEXs to rely on unsustainable token incentives, raising concerns about the future of AMMs. Stable Jack solves this issue by enabling DEXs to offer both fixed yields and leveraged long exposure on LP tokens.
Yield Token holders can have leveraged yield exposure from trading fees and token incentives while maintaining their principal, thus, becoming a great asset to use as collateral for looping thanks to its predictability in returns.
Volatility Token holders have leveraged exposure to the LP assets (e.g. BTC-ETH) without liquidation risk, thus they are exposed to an index token composed of the pool's pairs.
Or, as another option, Stable Jack can just offer fixed and leveraged yield on top LP Tokens.
Yield Token holders can earn a fixed yield while maintaining their principal.
Leveraged Yield Token holders can earn leveraged yield exposure if the trading fee and token emissions APR perform as expected or perform better than it is supposed to.
Perpetual DEXs like Jupiter and GMX need to attract liquidity from retail users to offer a good user experience for traders. Thus, they need to offer better yield options for LPs. By utilizing LP tokens on Perpetual DEXs or vaults as collateral, Stable Jack can offer 2 products:
Yield Token holders can earn a fixed yield while maintaining their principal, thus, becoming a great asset to use as collateral for looping thanks to its predictability in returns.
Leveraged Yield Token holders can earn leveraged yield exposure if the token or vaults perform as expected or perform better than it is supposed to.
Many DeFi tokens have limited use cases beyond speculation. Some protocols have addressed this by introducing revenue-sharing mechanisms, but most users are not attracted to variable and uncertain yield opportunities. By utilizing Stable Jack, protocols can offer fixed or leveraged yields on their governance tokens.
Yield Token holders earn a fixed yield while maintaining exposure to the governance token.
Volatility Token holders earn leveraged yields while maintaining exposure to the governance token.
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